penny stocks to avoid

For investors who are just starting out in the stock market, penny stocks almost always remain an attractive option. That’s primarily due to the fact that the sub $5 price of these stocks give the impression that there can be hefty returns in a short span of time.

At the end of the day, a new investor might think that there is a bigger chance of a penny stock going from $2 to $4 rather than a large-cap stock going from $1500 to $3000.

However, things do not often work out that way. The inherent risks associated with smaller cap stocks make it quite rare for these stocks to make such a move. Additionally, many of those stocks are beaten down for a while. Other stocks might be promoted by unscrupulous elements trying to make a quick buck in the market. So let’s take a look at two penny stocks that have had a bad time in 2019 so far.

Penny Stock #1: Yangtze River Port (YRIV)

Yangtze River Port and Logistics (YRIV Stock Report) is one of those penny stocks that had a pretty poor year so far. In fact, year to date, YRIV’s stock has been down by as much as 80%.

Yangtze River Port is involved in developing real estate in the port city of Wuhan in China and wants to make a port in the city, which it can then lease and operated on its own. However, the company’s financial statements paint a different picture altogether and the stock’s performance does not come as much of a surprise.

The company has not recorded any revenue or income during the past few quarters. In addition, the company reported that it has failed to generate any revenues for the quarter ended March 31, 2019. The company has not been able to project when it will be able to earn an income.

Penny Stock #2: Neovasc (NVCN)

The other penny stock that has been beaten down badly this year is Neovasc Inc (NVCN Stock Report) and the company’s stock has nosedived by as much as 30% in the year so far.

Neovasc is a healthcare penny stock, which is involved in the development, manufacturing, and sales of devices meant for cardiovascular problems. The company’s product the Reducer, which is meant for treating refractory angina may have been available in Europe for a few years now, but it is still awaiting approval in the United States.

The company is supposed to demonstrate the product’s effect on fatigue to the United States Food and Drug Administration. On 4 June, the company’s shareholders re-elected key members of the board until the next annual general meeting.

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